Today, on 23 April, the Cabinet of Ministers of Ukraine adopted a resolution envisaging the second stage of distribution of additional subsidies for the first quarter of 2024 for the regional budget of the Luhansk region and 207 budgets of territorial communities across Ukraine in the amount of UAH 266.2 million, including
- UAH 110.8 million - to compensate frontline communities for the decrease in local tax revenues. In particular, the land payment - UAH 86.3 million, the single tax - UAH 15.9 million, the tax on real estate other than land - UAH 8.6 million.
- UAH 155.4 million - to compensate for the difference in actual personal income tax revenues compared to the level of the first quarter of 2023.
In total, 102 local budgets of territorial communities in which active hostilities are taking place or which have been de-occupied will receive an additional subsidy totalling UAH 160.1 million.
Background information
On 12 April 2024, the Cabinet of Ministers approved a resolution expanding the possibilities of financing from the state budget to compensate for the losses of local budgets that may provide benefits to businesses in the frontline areas. The additional subsidy can now be used to compensate for the decline in revenues from a wider range of major local taxes compared to the previous year. This includes, among others, real estate tax, land fees and a single tax. This support will help to ensure financial stability for communities and businesses that are facing particularly difficult conditions as a result of the war.